Indiana guide

Indiana MLS Commission Advertising Rules After NAR Settlement

As an Indiana buyer, you and your agent will sign a written representation agreement that spells out exactly how your agent gets paid before they show you homes.

Reading as buyer.

TL;DR

As an Indiana buyer, you and your agent will sign a written representation agreement that spells out exactly how your agent gets paid before they show you homes. The no longer displays what a seller is offering toward your agent's fee, so your agent has to ask the listing side directly or negotiate a seller credit inside the purchase agreement. If the seller's offer doesn't cover your agent's full fee, you can ask for a seller concession, pay the gap yourself at closing, or keep looking.

Before you start — 8 things to know

  • On August 17, 2024, the settlement took effect and Indiana systems stopped showing any buyer-broker compensation offers on listings.

  • Before an Indiana buyer's agent can tour a home with you, federal settlement rules require a written buyer representation agreement that states exactly what your agent will be paid.

  • A seller in Indiana can still help cover your agent's fee, but that offer now shows up in marketing materials, broker-to-broker conversations, or the purchase agreement instead of any field.

  • If the seller's contribution falls short of what your buyer agreement says you owe your agent, you can request a seller concession in the purchase agreement to close the gap.

  • If no seller concession is available, the difference between what the seller offers and what you owe your buyer's agent under your agreement comes out of your pocket at closing.

  • Indiana buyer's agents now contact each listing agent before a showing to find out what, if anything, the seller is willing to offer toward buyer-side compensation.

  • MIBOR and other systems tied to the Indiana Association of REALTORS removed buyer-broker compensation fields as part of the post-settlement rules.

  • Your Indiana buyer representation agreement is an enforceable contract, so pick a fee structure with your agent that you can actually afford at closing.

The timeline — step by step

  1. Step 1 — Interview Indiana buyer's agents and review their fee structures in writing before scheduling any home tours.

  2. Step 2 — Sign a written buyer representation agreement that locks in exactly how much your buyer's agent will earn on the purchase.

  3. Step 3 — When you find a home you want to see, your buyer's agent contacts the Indiana listing agent to ask what, if anything, the seller will offer toward buyer-side pay.

  4. Step 4 — If the seller is offering less than your buyer agreement requires, decide whether to ask for a seller concession, pay the gap yourself, or move on to another listing.

  5. Step 5 — Submit your offer through the purchase agreement and include any seller concession that would cover buyer-side compensation.

  6. Step 6 — At closing, any approved seller concession is applied and any remaining buyer-agent fee comes out of your funds.

Common questions

Why can't I see what the seller is offering to pay my agent on Indiana listings anymore?
Indiana systems removed those compensation fields on August 17, 2024 because of the settlement, so any offer toward buyer-side pay now lives in marketing materials or the purchase agreement instead.
Do I have to pay my buyer's agent out of pocket in Indiana?
Not always — your buyer representation agreement sets the fee, and a seller can still offer a concession in the purchase agreement that covers some or all of it.
Can I still ask the seller to pay my agent in Indiana?
Yes — you can negotiate a seller concession inside the purchase agreement, but that offer can't be advertised through any commission field.
What happens if no Indiana seller will cover my agent's fee?
You would either cover the gap yourself at closing or renegotiate the fee with your buyer's agent before signing the representation agreement.
Does this [[MLS]] rule apply across all of Indiana, including MIBOR?
Yes — every tied to the Indiana Association of REALTORS, including MIBOR, follows the same post-settlement rules that ban buyer-broker compensation fields.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

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